Financial Performance - For the six months ended June 30, 2021, the company's revenue increased by 96.03% to HKD 3,694.3 million compared to HKD 1,884.6 million in the same period of 2020[15]. - The company's gross profit surged by 134.86% to HKD 174.5 million, compared to HKD 74.3 million in the previous year[19]. - The company's profit before tax for the first half of 2021 was HKD 154.3 million, significantly higher than HKD 64.9 million in the same period of 2020[15]. - The net profit after tax for the same period was HKD 129.7 million, compared to HKD 57.2 million in 2020, reflecting a strong recovery[15]. - For the six months ended June 30, 2021, the company's net profit increased by 126.75% to HKD 129.7 million, compared to HKD 57.2 million in the same period of 2020[23]. - Revenue for the six months ended June 30, 2021, was HKD 3,694,278,067, representing an increase of 96.0% compared to HKD 1,884,554,445 for the same period in 2020[125]. - Gross profit for the same period was HKD 174,478,938, up 134.0% from HKD 74,259,277 in 2020[125]. - Profit for the period was HKD 129,678,436, compared to HKD 57,208,694 in 2020, marking an increase of 126.5%[125]. Cost and Expenses - The cost of sales for the same period rose by 94.43% to HKD 3,519.8 million, up from HKD 1,810.3 million in 2020[18]. - The company's administrative and other operating expenses decreased by 4.51% to HKD 25.4 million, down from HKD 26.6 million in 2020, due to effective cost control measures[21]. - The financing costs decreased by 25.00% to HKD 0.6 million, down from HKD 0.8 million in 2020[22]. - The company reported a decrease in financing costs to HKD 627,854 for the six months ended June 30, 2021, down from HKD 782,933 for the same period in 2020, a reduction of about 20%[157]. Revenue Sources - The export volume of leaf products increased by 14.92% to 43,715 tons, with revenue rising by 3.57% to HKD 1,074.2 million[24]. - The import volume of leaf products surged by 356.28% to 56,022 tons, with revenue increasing by 223.32% to HKD 2,568.8 million[25]. - The export volume of new tobacco products rose by 544.03% to 102,400 thousand sticks, with revenue increasing by 554.50% to HKD 23.7 million[28]. - The company's revenue from tobacco leaf export sales reached HKD 1,073,726,606 for the six months ended June 30, 2021, compared to HKD 1,036,148,312 in the same period of 2020, representing an increase of approximately 3.3%[145]. - Revenue from tobacco leaf import sales significantly increased to HKD 2,568,781,581 in the first half of 2021, up from HKD 794,487,140 in the prior year, marking a growth of approximately 224.5%[145]. - The sales revenue from new tobacco products rose to HKD 23,747,880 in the first half of 2021, compared to HKD 3,628,404 in the same period of 2020, indicating a substantial increase of approximately 553.5%[145]. Strategic Focus - The company is focusing on enhancing its new tobacco product development and market expansion efforts to mitigate risks associated with traditional business[17]. - The company aims to optimize its business structure and improve supply chain coordination to maintain market advantages amid the ongoing pandemic[17]. - The management is committed to building a resilient enterprise by implementing a self-growing management system and risk control framework[17]. - The company is actively responding to government initiatives by providing pandemic protection for employees and enhancing its environmental, social, and governance (ESG) practices[17]. - The company plans to focus on supply chain stability and market demand fulfillment in the second half of 2021, amid uncertainties from the COVID-19 pandemic[29]. Assets and Liabilities - The company's total assets as of June 30, 2021, were HKD 2,483.1 million, a decrease from HKD 3,644.7 million as of December 31, 2020[89]. - The total liabilities of the company as of June 30, 2021, were HKD 793.1 million, down from HKD 2,056.8 million as of December 31, 2020[89]. - The company's cash and cash equivalents as of June 30, 2021, were HKD 1,818.6 million, compared to HKD 1,613.2 million as of December 31, 2020[89]. - The current ratio of the company as of June 30, 2021, was 3.2, an increase from 1.8 as of December 31, 2020[89]. - Trade receivables increased to HKD 433,031,181 as of June 30, 2021, from HKD 281,150,912 as of December 31, 2020, representing a growth of approximately 54%[167]. - Trade payables decreased from HKD 1,909,490,319 as of December 31, 2020, to HKD 723,605,990 as of June 30, 2021, representing a reduction of approximately 62%[13]. Corporate Governance - The company complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2021[117]. - The independent non-executive directors confirmed that the ongoing related party transactions were conducted on normal commercial terms and were fair and reasonable[83]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2021[116]. Shareholder Information - 72.29% of the company's shares were held by China Tobacco International Group as of June 30, 2021[109]. - The total issued and fully paid ordinary shares remained constant at 691,680,000 shares, with a total value of HKD 1,403,721,280 as of June 30, 2021[14]. - The company did not issue any equity securities during the six months ended June 30, 2021[104].

Financial Performance - Total revenue for 2020 was HKD 3,480,909,568, a decrease of 61.2% compared to HKD 8,976,951,511 in 2019[13] - Gross profit for 2020 was HKD 137,831,159, down 67.1% from HKD 418,838,157 in the previous year[13] - Net profit after tax for 2020 was HKD 95,191,858, representing a decline of 70.2% from HKD 318,925,470 in 2019[13] - The company reported a pre-tax profit of HKD 107,429,334 for 2020, down 71.7% from HKD 379,784,169 in 2019[13] - Other income net amounted to HKD 38,137,653, an increase of 43.9% from HKD 26,509,025 in the previous year[13] - Revenue amounted to HKD 1,350.7 million, a year-on-year decrease of HKD 3,280.1 million, reflecting a decline of 70.8%[29] - Gross profit was HKD 73.8 million, down HKD 185.9 million year-on-year, a decline of 71.6%[29] - Revenue from exports was HKD 158.1 million, a year-on-year decrease of HKD 2,003.3 million, reflecting a decline of 92.7%[35] - Net profit after tax for the year was HKD 95.2 million, a decrease of HKD 223.7 million year-on-year, reflecting a decline of 70.2%[47] Operational Challenges - The company faced challenges in its new tobacco product export business due to regulatory uncertainties impacting growth[150] - The ongoing COVID-19 pandemic significantly affected the sales of duty-free cigarettes in China and related regions[150] - The company's performance was adversely impacted by the US-China trade tensions, which halted tobacco leaf imports from the US from July 2018 to December 2020[150] Strategic Plans - The company plans to focus on market expansion and new product development in the upcoming year[12] - The company is exploring potential mergers and acquisitions to enhance its market position[12] - Future outlook remains cautious due to market volatility and regulatory challenges[12] - The company is actively exploring potential acquisition opportunities that align with its strategic development amidst changes in the global tobacco capital market[17] - The company is committed to developing new tobacco products and increasing its market penetration through technological innovation[17] Customer and Supplier Dynamics - The top five customers contributed approximately 82.6% of total revenue for the year ended December 31, 2020, compared to 74.9% in 2019[166] - The largest customer accounted for 38.8% of the company's revenue in 2020, down from 51.6% in 2019[166] - The procurement from the top five suppliers represented about 89.6% of total procurement for the year ended December 31, 2020, compared to 92.7% in 2019[166] - The largest supplier's procurement accounted for 61.5% of total procurement in 2020, down from 68.2% in 2019[166] Compliance and Governance - The company has complied with all relevant regulations regarding continuing connected transactions as per the Listing Rules during the reporting period[110] - The independent non-executive directors confirmed that the continuing connected transactions were conducted on normal commercial terms and were fair and reasonable[114] - The auditor confirmed that there were no issues that would suggest the continuing connected transactions were not approved by the board or did not comply with pricing policies[115] - The company received annual confirmations of independence from all independent non-executive directors as per the Listing Rules[174] Human Resources - As of December 31, 2020, the company employed 29 staff members in Hong Kong, down from 30 in the previous year[61] - Employee compensation includes base salary, performance bonuses, and various benefits, reviewed annually based on tenure, experience, and performance[61] - The company provides onboarding training and additional professional training based on specific job responsibilities during employment[61] Financial Management - The company maintains a conservative treasury policy, strictly controlling cash and risk management[165] - The company has a financial risk management policy detailed in note 19 of the financial statements[146] Future Outlook - The company plans to enhance risk forecasting capabilities and maintain strategic focus to recover export business in 2021[38] - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing product efficiency[5] - Market expansion plans include entering F new regions, which are projected to increase market share by G% over the next two years[6] Shareholder Information - The company proposed a final dividend of HKD 0.04 per share for the year ended December 31, 2020, down from HKD 0.16 per share in 2019[159] - As of December 31, 2020, the company's distributable reserves amounted to HKD 184.2 million, a decrease from HKD 199.7 million as of December 31, 2019[161] - As of December 31, 2020, the company had 691,680,000 shares issued, with China Tobacco Group holding 500,010,000 shares, representing 72.29% of the total issued shares[180][181] Miscellaneous - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2020[197] - The annual general meeting of shareholders is scheduled for May 21, 2021[194] - The company has appointed KPMG as its auditor for the years ended December 31, 2018, 2019, and 2020, and will propose reappointment at the upcoming annual general meeting[198]

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 1,884,554,445, a decrease of 52% compared to HKD 3,931,019,863 for the same period in 2019[11] - Gross profit for the same period was HKD 74,259,277, down from HKD 185,477,300, reflecting a significant decline in profitability[11] - The company reported a net profit after tax of HKD 57,208,694, compared to HKD 130,604,041 in the previous year, indicating a 56% decrease[11] - Operating profit decreased to HKD 65,700,116 from HKD 158,144,144, indicating a reduction of approximately 58.5% year-over-year[75] - Profit before tax was HKD 64,917,183, compared to HKD 158,144,144 in the previous year, marking a decline of about 59%[75] - Basic and diluted earnings per share decreased to HKD 0.08 from HKD 0.25, reflecting a significant drop in earnings[75] - The company reported a total comprehensive income of HKD 57,208,694 for the six months ended June 30, 2020, down from HKD 130,604,041 in the same period of 2019[79] Impact of COVID-19 - The impact of the COVID-19 pandemic led to delays in product delivery due to international supply chain disruptions, although the export business remained stable[13] - The company is focusing on building a resilient enterprise to prepare for post-pandemic recovery, enhancing operational stability and risk control capabilities[13] - The company has implemented cost reduction and efficiency enhancement measures in response to the pandemic's impact on operations[13] - A new internship program was launched to support economic development and employment in Hong Kong during the pandemic[13] - The company recognized COVID-19 related rent concessions amounting to HKD 100,000 during the reporting period[85] Market and Product Strategy - There is an ongoing strategy to expand the international market for heated non-combustible tobacco products (HNB), aiming to create an integrated ecological closed loop for new tobacco products[13] - The company plans to enhance management systems for new tobacco products and expand target markets in the second half of the year[23] - The company aims to optimize business structure and increase the revenue and profit share of new tobacco products[23] - The company plans to continue expanding its new tobacco product offerings and exploring further market opportunities[126] Related Party Transactions - Total revenue from related party transactions during the reporting period amounted to HKD 796.47 million, representing approximately 42.26% of total revenue[25] - Total procurement from related party transactions during the reporting period was HKD 1,052.57 million, accounting for about 62.66% of total procurement[25] - Related party transactions include dealings with China National Tobacco Corporation and its subsidiaries, which are significant shareholders of the company[25] - The company ensures that pricing for related party transactions is determined through fair negotiation, considering market conditions and supplier relationships[26] - The company engaged in significant related party transactions with CNTC Group, including procurement and sales of tobacco products, which are classified as continuing connected transactions[124] Financial Position - As of June 30, 2020, the company's total assets amounted to HKD 1,987.51 million, a decrease from HKD 2,869.80 million as of December 31, 2019[57] - The company's cash and cash equivalents were HKD 1,609.25 million as of June 30, 2020, indicating sufficient resources to support operations and foreseeable capital expenditures[57] - The total liabilities of the company were HKD 437.53 million as of June 30, 2020, down from HKD 1,266.35 million as of December 31, 2019[57] - The company's current ratio was 4.68 as of June 30, 2020, compared to 2.28 as of December 31, 2019, reflecting improved liquidity[57] - Total equity as of June 30, 2020, was HKD 1,549,981,400, a decrease from HKD 1,603,441,506 as of December 31, 2019, reflecting a decline of approximately 3.3%[79] Sales and Export Performance - Export volume of tobacco leaf products increased by 2,031 tons, a growth of 5.6% year-on-year, totaling 38,038 tons[15] - Revenue from tobacco leaf exports reached HKD 1,037.2 million, an increase of HKD 15.1 million, or 1.5% year-on-year[15] - Import volume of tobacco leaf products decreased by 26,837 tons, a decline of 68.6% year-on-year, totaling 12,278 tons[16] - Revenue from tobacco leaf imports fell to HKD 794.5 million, a decrease of HKD 1,379.8 million, or 63.5% year-on-year[16] - Export volume of cigarettes dropped by 1,620,580 thousand sticks, a decline of 92.7% year-on-year, totaling 127,045 thousand sticks[19] - Revenue from cigarette exports decreased to HKD 49.3 million, a drop of HKD 683.5 million, or 93.3% year-on-year[19] - Export volume of new tobacco products increased by 10,000 thousand sticks, a growth of 169.5% year-on-year, totaling 15,900 thousand sticks[22] - Revenue from new tobacco product exports reached HKD 3.6 million, an increase of HKD 1.8 million, or 93.2% year-on-year[22] Management and Governance - The company has enhanced its human resources management system to improve employee development and establish a performance-based compensation mechanism[13] - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[71] - The company’s board of directors underwent changes, with new appointments and resignations effective March 17, 2020[69] Assets and Liabilities - The company did not conduct any significant acquisitions or disposals during the six months ended June 30, 2020[57] - The company has no significant contingent liabilities as of June 30, 2020[57] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2020[70] - The company did not issue any new shares during the six months ended June 30, 2020, compared to HKD 784,759,874 from the previous period[79]

Financial Performance - The total revenue for the year 2019 was HKD 8,976,951,511, representing an increase of 27.7% compared to HKD 7,032,670,812 in 2018[11] - Gross profit for 2019 was HKD 418,838,157, up from HKD 372,913,988 in 2018, indicating a growth of 12.3%[11] - The net profit after tax for 2019 was HKD 318,925,470, which is a 21.8% increase from HKD 261,760,829 in 2018[11] - The company reported a pre-tax profit of HKD 379,784,169, compared to HKD 324,688,566 in the previous year, reflecting a growth of 16.9%[11] - The cost of sales for 2019 was HKD 8,558,113,354, which increased from HKD 6,659,756,824 in 2018, marking a rise of 28.5%[11] - The company generated other income of HKD 26,509,025, which is an increase from HKD 16,755,774 in 2018, showing a growth of 58.5%[11] - For the year ended December 31, 2019, the company's revenue was HKD 8,976.95 million, an increase of HKD 1,944.28 million or 27.6% year-on-year[32] - The cost of sales for the same period was HKD 8,558.11 million, up by HKD 1,898.35 million or 28.5% year-on-year[32] - Gross profit for the year was HKD 418.84 million, reflecting a year-on-year increase of HKD 45.93 million or 12.3%[32] - The company's net profit after tax for the year was HKD 318.93 million, an increase of HKD 57.17 million or 21.8% year-on-year[32] Market Expansion and Strategy - The company aims to expand its market presence and enhance product offerings in the coming years[9] - The management is focused on strategic development and potential acquisitions to drive future growth[9] - The company plans to focus on market expansion and new product development, particularly in the new tobacco products sector[20] - The company aims to enhance its governance structure in compliance with listing rules and regulatory requirements[20] - The company will actively pursue investment and acquisition opportunities in the global tobacco market to complement its strategic and business objectives[20] - The company aims to expand its export business in Vietnam and address potential risks in the Indonesian market due to tax increases on tobacco products[31] Related Party Transactions - Total revenue from related party transactions amounted to HKD 4,633.61 million, representing approximately 51.62% of total revenue for the reporting period[40] - Total procurement from related party transactions was HKD 5,289.27 million, accounting for about 68.18% of total procurement during the reporting period[40] - The pricing policy for imported tobacco leaf products is based on a formula where the selling price is 1.06 times the price from suppliers[40] - The applicable markup ratio for exported tobacco leaf products ranges from 1% to 4%, influenced by operational costs and reasonable profit margins[48] - The company has established exclusive operating and long-term supply framework agreements for both imported and exported tobacco leaf products, which are indefinite unless terminated[43][44] - The company has been authorized by the stock exchange to be exempt from strict compliance with annual caps for related party transactions under the framework agreements[42][49] - Related party transactions involve negotiations with independent third-party suppliers and affiliated entities, ensuring fair pricing based on market conditions[41] - The company maintains a consistent pricing mechanism across transactions with both independent third parties and related parties[41] Corporate Governance - The company aims to enhance its corporate governance and compliance practices, as evidenced by the appointment of experienced independent directors[93] - The board's composition reflects a commitment to maintaining high standards of corporate governance and financial oversight[94] - The company has a strong board with members holding various qualifications, including senior membership in accounting associations and extensive experience in financial compliance and corporate governance[94] - The board is tasked with reviewing the company's corporate governance policies and ensuring compliance with legal and regulatory requirements[170] - The company emphasizes board diversity, considering factors such as gender, age, cultural background, and professional experience in its board composition[169] - The company has established a risk management and internal control system to protect assets and shareholder interests, which was reviewed on August 26 and December 10, 2019[176] Risk Management and Compliance - The company has established financial risk management objectives and policies[103] - The company maintains significant relationships with employees, customers, and suppliers[103] - The company adheres to relevant laws and regulations that have a significant impact on its operations[103] - The company has implemented a comprehensive management system to ensure compliance with relevant laws and regulations in the tobacco industry[198] - The company actively engages with stakeholders, including investors, employees, customers, and suppliers, to understand their concerns and expectations[196] - The company has established a dedicated ESG task force to oversee environmental, social, and governance matters, focusing on compliance, employee rights, green initiatives, and community contributions[194] Challenges and Risks - The company has faced challenges in its new tobacco product export business due to regulatory uncertainties, which may adversely affect performance[105] - The ongoing US-China trade tensions have negatively impacted the company's leaf product import business since July 2018, as it has not purchased leaf products from the US[105] - The company’s performance may be influenced by seasonal fluctuations in its leaf product import and export business, making year-on-year comparisons potentially misleading[105] - The COVID-19 pandemic has significantly reduced inbound and outbound travel in China, impacting duty-free cigarette sales and disrupting the global supply chain[105] - The company’s performance may be affected by the global anti-smoking movement and increasing consumer health awareness, potentially leading to a decline in tobacco product demand[105] Shareholder Information - The company reported a special cash dividend amounting to HKD 192,949,668, which was 100% of the distributable reserves as of May 31, 2019[111] - The board proposed a final dividend of HKD 0.16 per share for the year ended December 31, 2019, compared to zero in 2018[112] - The company’s top five customers contributed approximately 74.9% of total revenue for the year ended December 31, 2019, down from 85.9% in 2018[115] - The largest customer accounted for 51.6% of the company's revenue in 2019, compared to 61.7% in 2018[115] - Purchases from the top five suppliers represented about 92.7% of total procurement for the year ended December 31, 2019, an increase from 88.2% in 2018[115] - The largest supplier accounted for 68.2% of total procurement, up from 58.2% in 2018[115] Management and Board Composition - The management team includes experienced professionals with extensive backgrounds in the tobacco industry, enhancing strategic decision-making capabilities[89] - The management team has a diverse range of expertise, with members holding advanced degrees in relevant fields, contributing to informed business strategies[89] - The board consists of members with diverse business experience, enhancing its operational efficiency[152] - The company encourages continuous professional development for directors to ensure they remain informed and effective[156] - The Nomination Committee consists of three members, with Mr. Shao Yan as the chairman, and is responsible for reviewing the board's structure and composition annually[164] Audit and Financial Oversight - The audit committee is tasked with reviewing the integrity of financial statements and overseeing risk management and internal control systems[159] - The remuneration committee is responsible for recommending remuneration policies for all directors and senior management[160] - The independent auditor has confirmed that there are no significant uncertainties regarding the company's ability to continue as a going concern[173] - The board believes that the internal control procedures and risk management functions are effective and adequate[176] Environmental, Social, and Governance (ESG) Initiatives - The company has established an environmental, social, and governance (ESG) team to oversee compliance with applicable environmental laws and regulations[109] - The company’s ESG report outlines its commitment to sustainable practices and corporate social responsibility initiatives[190] - The company has committed to sustainable development strategies that align with corporate social responsibility goals[194]

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of HKD 3,931.02 million, a decrease of 2.9% compared to HKD 4,048.34 million for the same period in 2018[9]. - The gross profit for the same period was HKD 185.48 million, down 24.1% from HKD 244.44 million in the previous year[9]. - The company achieved a net profit after tax of HKD 130.60 million, representing a decline of 30.5% from HKD 187.92 million in the prior year[9]. - The administrative and other operating expenses increased to HKD 33.26 million, up 32.6% from HKD 25.09 million in the previous year[9]. - The tax expense for the period was HKD 27.54 million, down 39.2% from HKD 45.21 million in the same period last year[9]. - The company's total revenue for the six months ended June 30, 2019, was HKD 3,931.02 million, a decrease of HKD 117.32 million or 2.9% year-on-year, with a net profit after tax of HKD 130.60 million, down 30.5% year-on-year[22]. - Profit before tax was HKD 158,144,144, representing a decline of 32.1% from HKD 233,124,253 in 2018[68]. - Basic and diluted earnings per share were HKD 0.25, down from HKD 0.37 in the same period last year[68]. - The company reported a decrease in operating cash flow to HKD 170,832,786 for the six months ended June 30, 2019, compared to HKD 679,376,737 for the same period in 2018, a decline of approximately 74.8%[105]. Revenue Breakdown - In the first half of 2019, the company's revenue from tobacco leaf exports was HKD 1,022.10 million, an increase of HKD 608.69 million or 147.2% year-on-year, with a gross profit of HKD 25.66 million, up 112.4% year-on-year[12]. - The company's tobacco leaf import revenue in the first half of 2019 was HKD 2,174.25 million, a decrease of HKD 1,311.32 million or 37.6% year-on-year, with a gross profit of HKD 121.61 million, down 29.9% year-on-year[15]. - The revenue from cigarette export sales reached HKD 732,786,485, compared to HKD 149,354,395 in the prior year, indicating a growth of approximately 389.5%[86]. - The revenue from new tobacco products was HKD 1,877,655, with no prior year comparison available[86]. - The revenue from tobacco leaf export sales was HKD 1,020,714,015, significantly up from HKD 413,409,296 in the previous year, marking an increase of approximately 146.5%[86]. - The revenue from tobacco leaf import sales was HKD 2,174,253,924, down from HKD 3,485,573,941, reflecting a decrease of about 37.5%[86]. Market Strategy and Operations - The company noted strong demand for Chinese tobacco leaf products in Southeast Asia, indicating a stable sales channel and customer resources in the region[11]. - The company is focused on expanding its tobacco leaf export business, leveraging the robust demand in traditional markets[11]. - The company aims to enhance its market presence and operational efficiency through strategic initiatives and potential market expansions[11]. - The company plans to launch approximately 15 new cigarette products in the second half of 2019 to optimize its product structure and expand its market presence in duty-free shops[19]. - The company aims to enhance its market share in Southeast Asia by exploring potential customer needs and expanding into new markets and customers in the second half of 2019[13]. - The company will strengthen cooperation with major duty-free operators to expand sales coverage to around 100 duty-free shops in mainland China, including major city airports[19]. - The company anticipates a significant increase in the export volume of new tobacco products in the second half of 2019 compared to the first half[22]. Related Party Transactions - Total revenue from related party transactions during the reporting period amounted to HKD 2,175 million, representing approximately 55% of the total revenue[23]. - Total procurement from related party transactions during the reporting period was HKD 1,967 million, accounting for about 62% of total procurement[23]. - The pricing policy for imported tobacco leaf products is based on a formula where the selling price is 1.06 times the price from suppliers[25]. - The applicable markup ratio for exported tobacco leaf products ranges from 1% to 4%, influenced by operational costs and reasonable profit margins[29]. - The company has established exclusive operating and long-term supply framework agreements for both imported and exported tobacco leaf products with China Tobacco Corporation[24][30]. - The company engages in fair negotiations with independent third-party suppliers and related parties to determine pricing for tobacco leaf products[26]. - The pricing for cigarette exports is based on different policies for various categories of duty-free cigarettes, effective from January 1, 2018[31]. - The procurement amount for cigarette export business during the reporting period was HKD 662 million, accounting for approximately 98% of the total procurement volume[34]. Financial Position and Assets - As of June 30, 2019, the total assets of the company were HKD 2,243.25 million, an increase from HKD 2,138.56 million as of December 31, 2018[46]. - The company had cash and cash equivalents of HKD 1,622.43 million as of June 30, 2019, compared to HKD 651.00 million as of December 31, 2018[46]. - The total liabilities of the company were HKD 947.08 million as of June 30, 2019, down from HKD 1,564.81 million as of December 31, 2018[46]. - The current ratio of the company as of June 30, 2019, was 2.4, compared to 1.4 as of December 31, 2018[46]. - The company declared a special cash dividend amounting to HKD 192,949,668, which represents 100% of the distributable reserves as of May 31, 2019[45]. - No interim dividend was recommended for the six months ended June 30, 2019[46]. - The company had no pledged assets or contingent liabilities as of June 30, 2019[49]. Corporate Governance and Compliance - The company has fully complied with the Corporate Governance Code since its listing date[63]. - The financial report is prepared in accordance with the Hong Kong Accounting Standards and has not been audited, but has been reviewed by KPMG[79][80]. - The company adopted HKFRS 16 on January 1, 2019, which introduces a single accounting model for lessees, requiring recognition of right-of-use assets and lease liabilities[81][82]. - The report highlights the importance of management's judgments and estimates in determining the application of accounting policies and reporting amounts[80]. - The company’s financial performance and position are subject to changes based on the application of new accounting standards and policies[81]. Shareholder Information - The major shareholder, China Tobacco International Group Limited, holds a 75% stake in the company[58]. - The company issued shares amounting to HKD 784,759,874 during the period[73]. - The total issued and fully paid ordinary shares increased to 666,680,000 shares as of June 30, 2019, from 500,010,000 shares as of December 31, 2018, reflecting a growth of 33.3%[108].